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But there鈥檚 no doubt Canada is starting to fall behind. By the end of this year,听聽worldwide will be electric, up from 1-in-5 in 2024. Here in Canada, EVs made up 15.4聽per cent of car sales last year, but due to a (hopefully temporary) pause of EV incentives nationally and in B.C., 2025 could go down as the first year that EV sales decline in Canada 鈥� even as they accelerate globally.

Which raises the question: Canadians are some of the richest inhabitants on planet Earth, so why are we turning into a technological backwater? More to the point, why can we not access so many of the lower-cost, high-quality EVs being sold to consumers in so many other countries?

The short answer is Canada鈥檚 walled-off, uncompetitive car market.

The most commonly known cause of this is Canada鈥檚 decision to align itself with the U.S. in placing a 100聽per cent tariff on Chinese EVs last year, a聽move made to placate the U.S. under Biden that has obviously not worked under Trump, who continues to impose unnecessary harm on our auto, steel and aluminum sectors.

Europe, by comparison, settled on tariffs of 8 per cent to 35 per cent after a long investigation; a proportionate response meant to even the playing field for its local automakers. The U.S. and Canada (though not Mexico) instead erected a veritable wall. Canada鈥檚聽canola,听听补苍诲听聽industries have since become collateral damage as a target of Chinese retaliation.

础蝉听聽recently concluded, 鈥渢here鈥檚 a clear factor dividing which countries are seeing faster EV adoption and which are going slower: openness to Chinese carmakers.鈥�

And this part is key: 鈥淓ven in markets where Chinese automakers make up a relatively small share of total EV sales, their presence forces competition and pushes incumbent automakers to put real effort into their EV launches.鈥�

The critical D-word here is not displacement but disruption. The idea that competition drives everyone to up their game is as old as Adam Smith.

In the above mentioned Abacus survey, 53聽per cent of Canadians say they would prefer 鈥渁 lower tariff that balances protection for Canada鈥檚 auto industry with improving affordability,鈥� with another 29聽per cent preferring no tariff at all on Chinese EVs. Only 19聽per cent want to keep a 100 per cent tariff in place.

But China is not the only important disrupter.聽聽advocated by the Canadian Automobile Dealers Association sounds like a no-brainer when said aloud: vehicles approved for European roads should be approved for Canadian ones. Dealerships get more cars to sell and Canadians enjoy more choice.

European models like the compact Renault 5, a well-reviewed electric hatchback, would help fill a current void in our limited car market. The idea is a popular one, with 70聽per cent support among Canadians and only 10聽per cent opposition.

Yes, jobs in Canadian manufacturing are vitally important. But Canada can strike a balance between opening up the EV market the right amount, investing in while also fairly regulating automakers and incentivizing consumers. Indeed, Canada鈥檚 Electric Vehicle Availability Standard effectively applies some of the pressure that would otherwise exist in a completely competitive environment on behalf of the consumer.

There are other ways to encourage more affordable EV options as well, such as putting a relatively tight price cap on EV rebates or perhaps even offering a bonus rebate for cars coming in under $40,000.

Canada could also explore easing tariff pressure further if, for example, Chinese-based聽聽agreed to build EVs in Canada, employing Canadian auto workers, engaging in technology transfer and creating demand for all the upstream critical minerals and battery components we have to offer.

Finally, it鈥檚 not the case that legacy automakers can鈥檛 compete. GM is聽聽and the company says it will soon聽聽its most affordable offering, the Chevy Bolt, no doubt responding to the threat of low-cost Chinese EVs. GM鈥檚 $40,000 EV was once the most popular non-Tesla electric car in Canada.

A more competitive Canadian market might just compel GM to prioritize Canada as the first new Bolts roll off factory lines. The question, after all, is not whether Canadians want EVs, but whether we鈥檙e presenting them with the best options.

Correction - June 10, 2025

This article was updated from a previous version that mistakenly said Canada鈥檚 decision to align itself with the U.S. by placing a 100聽per cent tariff on Chinese EVs last year was to placate U.S. President Donald Trump.聽 In fact, those tariffs were introduced during former U.S. President Joe Biden’s time.聽